Which of the following is NOT one of the measures used by the Fed to control the money supply?

Which of the following is NOT one of the measures used by the Fed to control the money supply?










A) It sets discount rates for the money that banks can borrow from the Federal Reserve.

B) It can buy and sell government securities in the market, thereby either expanding or contracting the money supply.

C) It sets reserve requirements that determine the amount of money that banks must keep in reserve at all times.

D) It dictates the minimum prime lending rate by commercial banks.

E) none of the above










Answer: D


AP Government

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